Daily thread to exchange ideas and to share your thoughts
Good day, everyone! Hope you're doing well as we get things going here on the session.
It's been a lively start to the day with the aussie marked lower after a weaker jobs report while the risk mood is slightly tempered with by softer Chinese data and continued anxiety surrounding US-China trade talks.
As a result, the yen is holding mild gains amid lower bond yields while the kiwi gives up some of its overnight gains just under 0.6400 against the dollar.
The logical side in me wants to go chasing the move in yen pairs with USD/JPY also threatening a further break to the downside, but my gut feel tells me that Trump will eventually come up with some wacky headline to boost up hopes of a trade deal again.
In any case, the continued move higher in US equities is but another sign that markets are still rather complacent about the deal falling apart. As such, any reset or breakdown in talks could see some ugly moves that may benefit the yen, franc and gold in particular.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.